This invention relates to methods of transferring money in from a sender to a distant recipient.
Conventional bank checking and savings accounts are often not available to minors or persons with poor credit or financial status. Even if those persons have a savings account, generally they will have to visit the savings institution in person at inconvenient times to receive cash.
Often a person away from home in a different city or foreign country on business, vacation, etc. or a student away from home at school has a need for additional money. Where a purchase is to be made, a conventional check or credit card often suffices. However, many establishments do not accept out-of-town checks and not everyone has a checking account. Also, not everyone carries credit cards and not all vendors take credit cards or only accept certain cards. Sometimes, people are at or near their credit limit and cannot use their card. Thus, there is a need for a cash transfer from a source of funds to the person at the distant location.
Various agent-based money transfer services exist, such as those provided by Western Union and MoneyGram. While useful in some circumstances, these require a sender to go to the agent""s facility, have money transferred to a site near the recipient, who then must go to the transfer agent""s site to receive the cash. This is a slow and often inconvenient arrangement.
A number of methods of transferring money have been developed in attempts to alleviate at least some of these problems. For example, pre-paid calling card systems are described by Simson et al. in U.S. Pat. No. 5,721,768 and Taskett in U.S. Pat. No. 5,991,748. Upon payment of an amount to be transferred and a fee, a card is xe2x80x9cchargedxe2x80x9d with magnetic information indicating the money value. When the card is used to make a long-distance telephone call or make a purchase, the cost is deducted. The card can be recharged at a terminal with value from a pre-authorized money amount. While quite useful, these cards require pre-payment of a base amount from which the card can be recharged. Thus, one cannot obtain a recharge when an amount beyond the pre-payment is needed. Further, these cards are generally only useful for payment for goods or services, not to obtain cash.
A number of different systems, such as that described by Konya in U.S. Pat. No. 5,937,396, are available for remotely transferring funds between accounts through use of an ATM card. However, these are not usable by those who do not have accounts of the sort accessed by these cards.
Methods of holding and dispensing cash are described by Cucinotta et al. in U.S. Pat. No. 5,633,546 and Levine et al. in U.S. Pat. No. 5,477,038. In these arrangements, cash is deposited with a holder and an ATM card is issued to the depositor. The ATM card can be used to withdraw cash up to the amount deposited. However, this card system requires pre-deposits of funds and does not conveniently allow others to recharge the account.
Thus, there is a continuing need for a cash transfer system of improved efficiency and convenience, that is useable by minors and those with poor credit histories and those who do not have checking accounts and/or credit cards and that makes the cash available to the receiver promptly without any need to go to a transfer agent""s location.
The above-noted problems, and others, are overcome in accordance with this invention by a method of transferring cash from a sender to a receiver which basically involves a person intending to receive cash (the xe2x80x9creceiverxe2x80x9d) sent from another person (the xe2x80x9csenderxe2x80x9d) initially acquires an unactivated cash card, then contacts an issuing agent for the company operating the system to have the card activated. The card is generally similar to an ATM or debit card, having a unique serial number, a magnetizable strip and indicia identifying the issuing company and agent to contact. Contact may be made in any suitable manner, such as by telephone (usually a toll-free number), by on-line banking methods, via the internet to the company""s website or through an authorized ATM.
When contacted, the issuing agent prompts the receiver to enter the card number, generally through the keypad or keyboard on the telephone, computer or ATM. The receiver then provides a custom passcode (also known as a personal identification number), generally a four-digit number.
The receiver then contacts the sender who is to provide the funds, giving the sender the card account identification number. The sender deposits funds into the card account in any suitable manner. Typically the deposit may be made using online banking via a personal computer, directing his or her bank to transfer funds to the cash card account number. Or, the transfer may be made by the sender contacting the system agent and authorizing transfer to the cash card account number from his or her credit or debit card. Alternatively, the sender may deposit cash or use an alternative payment such as check, credit/debit card personally with a local issuing agent of the operating company.
The funds transfer electronically through a transfer clearing system and appears as a credit available to the cash card account number.
The receiver may now access the funds by using the cash card, with his or her passcode, at any authorized ATM, or may purchase goods from authorized vendors or may receive services from an authorized vendor in the same manner as using a debit card.
The sender (or other senders) may later add additional funds to the cash card, although it may be more convenient to just use a new, free, card.